Prime Minister Theresa May declared it had an “immediate impact” and that in the next five years, one million first-time buyers would benefit.

She said: “I have made it my personal mission to build the homes this country needs so we can restore the dream of home ownership for people up and down the UK.

“We are building a Britain that is fit for the future and our message to the next generation is this – getting on – and climbing up – the housing ladder is not just a dream of your parents’ past, but a reality for your future.”

The stamp duty cut meant that 80% of those buying their first home would not pay any stamp duty.

But Labour’s shadow housing minister John Healey said that what is really needed is affordable housing.

He said: “The number of young home-owners is in free-fall.

“But under the Tories the number of new low-cost homes for first-time buyers has halved and not a single one of the 200,000 ‘starter homes’ promised has been built.

“After almost eight years of Conservative failure on housing, homelessness has doubled, home-ownership has fallen to a 30-year low and the number of new social rented homes is at the lowest level since records began.

“It’s clear Theresa May has no plan to fix the country’s housing crisis.”